Friction in an economic context refers to barriers, constraints, or disruptions that affect the availability of goods or services. In the beauty and wellness industry, this can look like supply or ingredient shortages, regulatory changes, or shifts in consumer perception. One intriguing aspect of friction is its ability to drive demand, when something is perceived as scarce or at risk of disappearing, its value can skyrocket.
So, this raises the question, does friction create value? If something becomes harder to obtain, whether it’s a beloved social media platform like TikTok or a game changing blow dryer like Dyson Airwrap, does it become more desirable? The answer, in many cases, is yes.
The Economics of Scarcity
The basic principle of supply and demand suggests that when a product becomes scarce, its perceived value increases. If a key ingredient in lipstick were suddenly difficult to source, the resulting shortage would likely lead to higher prices. Consumers might panic and buy their favorite shades, beauty influencers could amplify demand by hyping up the last remaining stock, and the product would gain an air of exclusivity.
Psychologically speaking, scarcity fuels desire and consumers will associate rarity with prestige and quality. When a product is harder to obtain, it triggers a sense of urgency, compelling people to act fast before it’s gone. This is why limited-edition product drops, waiting lists, and VIP only releases are such powerful tools in marketing.
The TikTok Effect Represents How Uncertainty Fuels Demand
A recent example of scarcity driven demand is TikTok’s potential ban, which created a paradoxical reaction. On one hand, it drove engagement, but on the other, it pushed some users toward alternative platforms. As lawmakers debated restrictions on the app, millions of users rushed to consume and create content, afraid that their favorite platform could disappear overnight. This urgency mimicked the “last chance” effect, where people act impulsively to secure something before it’s gone.
The platform became a rallying point, reinforcing its importance in digital culture and the mere possibility of TikTok’s removal intensified its cultural significance.
On the other hand, friction doesn’t always result in higher demand, sometimes, it fractures it. The uncertainty surrounding TikTok’s future led some creators and businesses to diversify their social media presence, exploring other platforms to avoid relying heavily on a single app. While TikTok’s potential ban increased engagement, the long term impact depended on whether it could stabilize its position.
Luxury Goods & Artificial Scarcity
High end brands will sometimes manufacture scarcity to create exclusivity. The harder an item is to obtain; the more consumers want it.
Take Hermès handbags, particularly the Birkin. Customers can’t simply walk into a store and purchase one; they need to cultivate a relationship with the brand by spending significant sums on other Hermès products before being offered the opportunity to buy a Birkin handbag.
This artificial scarcity drives demand to extraordinary levels. The result? Secondhand Birkin bags often sell for double or triple their retail price, and owning one is seen as a status symbol. Exclusivity transforms the product into an aspirational luxury, proving that scarcity whether real or manufactured can be a powerful demand driver.
How Friction Fueled Unprecedented Demand, the Dyson Airwrap Example
In the beauty world, Dyson Airwrap became one of the most coveted beauty tools on the market, not just because of its cutting-edge technology but also due to the friction surrounding its availability.
During global supply chain disruptions in 2022, Dyson faced chip shortages, rising logistical costs, and material and labor constraints. These factors limited the number of units produced, making the Airwrap even more difficult to purchase. As a result, demand skyrocketed, with consumers scrambling to buy it before stock ran out.
The combination of limited availability, high price points, and influencer driven hype helped create a perfect storm where scarcity didn’t just drive demand, it solidified the Airwrap’s status as a luxury must have.
Turning Scarcity into Strategy
For businesses, the strategic use of friction, whether through exclusive product drops, limited time offers, or perceived risk, can be a powerful tool. However, it’s a fine line to walk.
While friction can increase value, not all disruptions lead to positive outcomes. Supply chain breakdowns can frustrate consumers rather than entice them, and excessive restrictions may drive them somewhere else. The key lies in balancing scarcity, perception, and genuine need. The goal is to create excitement, not alienation.
Ultimately, friction has the potential to drive demand, but only when leveraged in a way that enhances, rather than disrupts, the consumer experience. In a world where abundance dulls desire, friction is the spark that turns products into obsessions, brands into icons, and fleeting moments into cultural phenomena.
